The Insurance Regulatory and Development Authority of India has permitted insurers and reinsurers to invest in Additional Tier 1 Bonds and debt capital instruments and preference share capital instruments, except perpetual cumulative preference shares, forming Tier 2 capital issued by RBI-regulated all India financial institutions.
The move is aimed at widening scope for investments and portfolio diversification and follows RBI allowing AIFIs to issue AT1 Bonds and Tier 2 capital from April 1, 2024 under Prudential Regulations on Basel III Capital Framework, IRDAI said.
Under the existing framework, insurers are allowed to invest in AT1 Bonds and debt capital instruments and preference share capital instruments forming Tier 2 capital of banks, it said in a circular.
Infra SPVs
IRDAI is also considering norms permitting investments in special purpose vehicles in the infrastructure sector whose project has commenced commercial operation and cash flow stabilised, without requirements of parent company guarantee or parent company’s networth and rating.
Published – December 22, 2025 10:06 pm IST
